The European Fund for Southeast Europe: An Innovative Instrument for Political and Economic Stabilisation

The structure of the new fund appears to be a highly promising model. As the first fund of its size to use this model, close monitoring is important to ascertain whether the extremely positive predictions will materialise on a timely basis. If it operates according to plan, the model might be a blueprint for other regions facing similar issues. Having succeded in launching a pilot project in the International Year of Microcredit, that achieves a lasting improvement of living conditions for large numbers of households quickly, cost-efficiently and in a sustainable fashion where there is a great gap between human capital and investment capital gives this year an additional highlight. Against the backdrop of the Millennium Development Goals this effort might be among the desperately sought solutions for poverty reduction.